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CHAPTER THREE
1
As it has been indicated in item 1 of table 1 respondents were asked with regard to their sexes and
20(80%)of the respondents were found to be male whilst the rest 5(20%) of the respondents operating in
the sections were female.Thus, one can infer that there are more males in the target sections than
that of female.
In item 2 of table 1 above the age ofthe respondents has been described as 10(40%) of the respondents
are categorized between the age of 25-35 years and the rest 15(60%)of the respondents are categorized
between the age group 35-42years. In this regard no respondent were found between the age
categories 18-25 years and that of 45 years and above.Thus,based on this one can inferth at most of the
With regard to the educational background of the respondents item 3 of table 1has indicated that
5(20%) of the respondents have diploma while 18(72%) of the respondents have
firstdegree.However there were no certificate graduates and have 2(8%) attended MSc/MAprograms.From
this one can infer that most of the respondents have better academic background, which is called
professionals.
Finally initem 4 of table 1, It has been indicated that the respondents were asked regarding the length
of time they have served the cash management section and 5(20%) of the respondents have been in
the department for the last six months, 15(60%) of the respondents have been working in the
department for the last 1year and the rest 5(20%) of the respondents have been in thesection for more
than 1year. It can be said that most of the respondents have been juniore employees to the organization.
The first research question of this paper asks with regard to Techniques of cashmanagement
Strongly
Disagre
y Agree
Neutral
Strongl
No Items
Agree
Total
e
2
No % No % No % No % No % No %
1 There is a
standardized
written manual 8 32 7 28 1 4 4 16 5 20 25 100
regarding cash
control
procedures.
2 Cash control
procedures of
the bank 5 20 3 12 2 8 12 48 3 12 25 100
areadequately
communicated
to
employees
3 Duties have been
adequately
segregated in 2 8 3 12 1 4 13 52 6 24 25 100
your section
4 There is no
certain individual
authorized to 13 52 5 20 1 4 3 12 3 12 25 100
handle cash
5 Cheques are
pre numbered
19 76 3 12 1 4 1 4 1 4 25 100
insequential
order
As can be seen in item 1 of table 2, the respondents were asked express their level of agreement
regarding the question that asked there is a standardized written manual regarding cash control
procedures 8(32%) of the respondents have strongly agreed,7(28%) of them have agreed, 1(4%)
of the respondents have remained neutral,4(16%) of the respondents have disagreed while the rest
5(20%) of the respondents have strongly disagreed to the statement. Thus, one can infer that
performance of cash management for the employees.In other words, the control procedures help the
cash management process to be consistently operated across those who are in charge of it.
As it is indicated in item 2 of table 3, the respondents were asked to express their level of
3
agreement regarding the question that asked them cash control procedures of the bank
3(12%of them have agreed,2(8%) of therespondents have remained neutral, 12(48%) of the
respondents have disagreed while the rest 3(12%) of the respondents have strongly disagreed to
the statement. Based on this premise one can understand that the existing written guideline as
tol how to put the cash control procedure are not adequately communicated.This, infact, has an
can effectively under take the cash management system. A scan be observed initem 3 of table 2, the
respondents were asked to express their level of agreement regarding the question that asked duties have been
adequately segregatedin your section 2(8%) of the respondents have strongly agreed, 3(12%) of them have
agreed, 1(4%)of the respondentshave remained neutral, 3(52%) of the respondents have disagreed
while the rest 6(24%) of the respondents have strongly disagreed to the statement.From this one
can deduce that the bank has hardly employed cash segregation. Thus, it will be difficult
to protect cash from theft otherwise.
As it is indicated initem 4 of table 2, the respondents were asked express their level of agreement regarding the
question that asked them there is no certain individual authorized to handle cash13(52%) of the
respondents have strongly agreed, 5(20%)of them have agreed,1(4%) of the respondents have
remainedneutral, 3(12%)of the respondents have disagreed while the rest 3(12%) of the
respondents have strongly disagreed to the statement. Consequently, onecan deduce that the bank has a
lose system in this regard. Thus, it does not adequately put properauthorization in place so that it can make the
cash management process transparent enough.
As one can see initem 5 of table 2,the respondents were asked express their level of agreement
regarding the question that asked them cheques are prenumbered insequential order 19(76%) of
the respondents have strongly agreed,3(12%)of them have agreed, 1(4%) of the respondents
have remained neutral,1(4%)of the respondents have disagreed while the rest 1(4%) of the
respondents have strongly disagreed to the statement.There fore one can say that the bank
has a cash management system that will provide worth while control system in
4
StronglyDisagree
No Items
Strongly Agree
Disagree
Neutral
CD
Total
C
O)i_D
<
No % No % No % No % No % No %
Custodians often
check excess
1 1 4 24 1 4 2
vault cash to take 6 8 15 60 25 100
immediate
measures
In cases there are
shortages of vault
the
amount
The chief
supervisor always
and shortage of
cash on the
counter
cashers
As onecan observei item 1of table 3,respondents were asked to rate theirlevel of agreement for the
question that asked themcustodians often check excess vault cash to take immediate measures
5
and 1(4%) of the respondents have strongly agreed, 6(24%) of them have agreed,1(4%) of there
spondents
have remained neutral,2(8%)of the respondents have disagreed while the rest 15(60%) of the
respondents have strongly disagreed to the statement. From this onecan infer
that custodians donot often check exces vault cash to take immediate measures. This leaves the
As one can observe in item 2oftable 3,respondents were asked to rate their level of
agreement for the question that asked them in cases there are shortages of vault cash
face cashers the custodians are promptly alert to fill them with the amountand 1(4%) of the
respondents have remained neutral,3(12%) of the respondents have disagreed while the rest
13(52%)of the respondents havestrongly disagreed to the statement.Thus, one can deduce from this
data thatthere are shortages of vault cash face cashers the custodians are promptly alert to fill
them with the amount which is against the regulation of the bank.As one can observe in item 3 of
table 3,respondents were asked to rate their level of agreement for the question that asked
them the chief supervisor always keeps track of the custodians to check the
excess and shortage of cash on the counter cashers 5(20%) of the respondents have strongly
the respondents have disagreed while the rest 12(48%) of the respondents have
strongly disagreed to the statement. From this one can infer that the chief supervisor is currently
loose on keeping track of the custodians to check the excess and shortage of cash on the counter
cashers.Thise leaves the cash in excess, subject to misuse by counter cashers and the
shortage leaves the counter cashers in particular and the banking gneral in customer complaints.
In any research, the researcher needs to assess the relevance of its respondents with respect to the data
needed to be obtained for making certain findings.Accordingly the researchers collected the following data
about sex,Educational qualifications and customary relationship with the bank.
6
3.2.2 Sex distribution of respondents
The sex distributions of selected customers are presented asfollows:
Table 4:customer's sex distribution
Gender Frequenc Percenta
y ge
Male 21 34
Female 42 66
Total 63 100
Source:primary Data
As indicated in the above table, majority,42(66%) of respondents were female and 21(34%) were
mael.This implies that there are large numbers of female customers in Abune petros branch demand
of gender based banking services.
7
ResponsesIn
Item Questions
No. %
1 Forhow long have youa customary relationship with the
bank?
Response Options
Less than a year 21 33.33
1 up to 5 years 33 52.38
above 5 years 9 14.29
Total 63 100
2 How do you select Dashn from other competitive banks?
Response Options
Because its government owned 6 9.52
Because of its accessibility 27 42.86
Becauseof its better service 24 38.10
Other reason 6 9.52
Total 63 100
3 What kind of service are you taking from thebank?
Response Options
Saving or current account 42 66.67
Foreign currency exchange service 12 19.05
Loan or trade service
Money transfer service 9 14.29
Total 63 100
Source:PrimaryData
As illustrated in the above table, the customer's relationship with the bank analyzed and presented.In the first
place,the request in item one presents thecustomer's years of customary relationship with the bank.In this
regard,majority,33(52.38%) of respondents proclaim that they have one to five years of customary relationship
with the bank.Customers with a relationship of lessthan a year rates 21(33.33%) and 9(14.29%) of
respondents have been customers for more than five years. Based on the gathered data, majority of
customers are in the earliest stage of customary relationship with the bank so that the bank should be
committed to sustain its relationship by satisfying existing customers and attracting thene.
Item two requests how the customers are choosing the bank among other competitive banks.In this
regard, majority, 27(42.86%) of respondents proclaim that they are attracted by the bank's accessibility. The
next majority,24(38.10%) of respondents believe that they preferred the bank by its betterservice. On the
other hand, 6(9.52%) respondents replied that they preferred the bank because of its government
ownership. While inferring this, the bankshouldimproveits strength which helps to stay in a highly competitive
banking industry.
As indicated in Item three, customers were requested what kind of service they are taking from the bank. In this
regard, among the selected 63 respondents, 42(66.67%) of them are saving or current account holders &
12(19.05%)respondents proclaim that they are taking foreign currency exchange services.Beside this,
9(14.29%) of respondents stated that they are local money transferservicecustomers.
8
Table7:Customer's response to wards customer service of the bank
ResponsesIn
Item Question
s No. %
Item three contains the responses of customers concerning one window service in the branch and
24(47.06%) proclaim that sometimes they are 9 not getting one window 9 service in the branch in contrast
9
with those 21(41.18%), who preferred to sayd efinitely yes for they are gettingone window service.
Finally,as the above table, item four indicates, customers were requestedabout the employees' commitment
and 24(53.33%) of them found the employees commitment with very well status.Others, 21(46.67%)
preferred to grade as well status.This refers the employees commitment is in the very encouraging condition
that they have to keep it up.
CHAPTERFOUR
SUMMARY,CONCLUSIONSANDRECOMMENDATIONS
The topic ofthis study is anassessment of cash management practice in the case of NIB.
Thus, following the student researchers has raised the four research questions.Thus, it has
primarily asked the extent to which the bank has met the reserve requirements of NBE.
Secondly it has asked how effective the bank is in keeping track ofthe
techniques ofcash management.Moreover, it was also asked as to how effectively vault cash
are handled in the bank.In order to successfully look answer for these research questions,
the student researchers have designed a closed ended questionnaire and document
analysisas tools of data collection.30 questionnaires were distributed and 25 of them filled
and returned. Based on the returned questionnaires the following was made.
4.1 Summary
Based on the presentation analysis and interpretation made in chapter three the
following are summary ofthe major findings.
. 15(60%) of the respondents are categorized be tweenthe age group 35 -42 years.
. 15(60%) of the espondents have been working in the department for the last 1year
. 8 (32%) of the respondents have strongly agreed that there is a standardized written .
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. 12(48%) of the respondents have remained disagreed that asked cash control procedures of the bank
. 13(52%) of the respondents have strongly agreed to the statement that asked them
. 19(76%) of the respondents have strongly agreed to the question that asked them
asked the min cases there are shortages of vault cash face cashers the custodians are
promptly alert to fill them with the amount 12(48%) of the respondents have strongly dis
agreed to the statement the chief supervisor always keeps track of the custodians to check
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4.2 Conclusions
Having seen the major findings of this study the following conclusions have been made in line with
• As it has been found out earlier that there are more male employees working on the cash
management related activitiesand most of the employees working in these activities have
joined the organization in not more than ayear now. The bank has not met there serve
been found defic it at one instance and remained excess at other times and lacked
consistently meeting the required standard. Often times segregation of duties in the
eventually be responsible. The cash management practice of the bank has been found
to be poor in some in it has a procedure that is written about the cash management
practice,it has not been communicated adequately; duties have not been adequately
segregated. Finally the bank has poor control over valut cash,where vault cash not
adequtely managed excess cash and shortageis not kept checked continusly leaving
4.3 Recommendations
Having identified the summary of findings and conclusions made earlier, the following
.Instead of having an excess reserve, the bank needs to invest in different are as
of short term investment projects that will have quicker pay back periods
.Thebank needs to adequately communicate the manuals and the procedures during recruitment
and during formal meetings designed specifically to address the company's specific operational issues
• The bank needs to clarify by segregating duties. As it was identified in the interpretation
12
partearlier,the bank has been found to be not clearly demarcating duties that
is not adequately practiced, then it is likely that the bank will be susceptible to theft.
• Cashierson counters often face vault cash shortages. In those occasions the
custodians who are in charge of vault cash need to fill the required amount as soon as
possible. Other wise customers will questiontheir waiting time in the bank.
• Thereis afixed amount on vault cash in the bank. In those circumstances the vault
cash sometimes remains excess, the custodians need to take back the extra
13
Bibliography
Catherine, L. Bromiliw Berlin and J. Anderson (2005), Internal Auditor, Working with
AuditCommittees,NewDelhi:PuchePublishers Plc.
Louis, Braiotta. John (1999).Cash Control Committee Hand Book,(3rd Edition) New
York:WileyandSons Inc.
Rolandas,Rupsys(2005).TheAnalysisofReportingLines,SallyFCutler,DesigningandWriti
ngMessage-BasedAuditReporting.Florida:IIARFPublishersPvtLtd.
14
AppendixI
the CaseofDashn Bank S.C.”. The purpose of the study is to ful fill a senior essay
Collage. Your highly esteemed responses for the Items are extremely important for successful
completion of our senior essay. The information that you provide will be used only for the
Finally, we would like to thank you very much for your cooperation and
2. Sex
1. Male J J 2.Female J J
3. Educational status
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Section II: Please indicate on a five point scale the extent to which
in the column on a five point scale the extent to which you are
1=StronglyAgree2=Agree3=Neutral4=Disagree5=StronglyDisagree
S.N Items 1 2 3 4 5
17
DECLARATION
We, the under signed, here by declare that this senior essay entitled ”An Assessment
ofCash Management in Case of Dashn Bank S.C ”is our original work prepared under the guidance
of Ato Asmamaw fiesha. All sources of materials used for the manuscript have been duly
acknowledged.
Betelehem Signature
Brehane Signature
Date of submission
ADVISOR'S DECLARATION
This paper has been submitted for examination with our appropriate approval as college advisor
Signature Date
18
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